CALGARY,
AB, Sept. 21, 2023 /CNW/ - Stampede
Drilling Inc. ("Stampede" or the "Company") (TSXV: SDI) announced
today that it has entered into a new $50
million credit agreement with HSBC Bank Canada and The
Toronto-Dominion Bank (the "Credit Agreement"). Under the Credit
Agreement, which has an initial term of three years, Stampede will
have an available limit of $20
million under a non-revolving term loan (the "Term Loan
Facility"), $15 million under a
revolving credit facility (the "Syndicated Facility") and
$15 million under an additional
revolving credit facility (the "Operating Facility", and
collectively with the Term Loan Facility and the Syndicated
Facility, the "Credit Facilities").
The proceeds of the Term Loan Facility will be used to fund the
repayment of Stampede's existing indebtedness under its current
amended and restated facility letter dated April 19, 2022, as amended from time to time,
with HSBC Bank Canada. The proceeds of the Syndicated Facility and
Operating Facility will be used for the general corporate purposes
of the Company.
The principal amount outstanding under the Credit Facilities
shall be repaid on or before September 20,
2026 (or such later dates as to which the maturity dates of
each Credit Facility may be extended from time to time in
accordance with the terms of the Credit Agreement), at an annual
interest rate determined in connection with the performance of the
Company in respect to certain financial covenants. The Credit
Agreement provides for customary positive and negative covenants,
including limitations and permitted dealings in respect of debt,
acquisitions, dispositions, distributions and capital
expenditures.
Forward-Looking Statements
Certain statements contained in this News Release constitute
forward-looking statements or forward-looking information
(collectively, "forward-looking information").
Forward-looking information relates to future events or the
Company's future performance. All information other than statements
of historical fact is forward-looking information. The use of any
of the words "anticipate", "plan", "contemplate", "continue",
"estimate", "expect", "intend", "propose", "might", "may", "will",
"could", "should", "believe", "predict", and "forecast" are
intended to identify forward-looking information.
This News Release contains forward-looking information
pertaining to, among other things: the use of proceeds of the
Credit Facilities; the annual interest rate applicable to the
Credit Facilities; and the possible extension of the Credit
Facilities in accordance with the terms of the Credit
Agreement.
Forward-looking information is based on certain assumptions that
the Company has made in respect thereof as at the date of this News
Release regarding, among other things: that Stampede's businesses
will continue to achieve sustainable financial results and that
future results of operations will be consistent with past
performance and management expectations in relation thereto; oil
and gas industry exploration and development activity levels;
prevailing commodity prices, interest rates, carbon prices, tax
rates and exchange rates; future operating costs; and the
availability of capital.
While Stampede believes the expectations and material factors
and assumptions reflected in the forward-looking information is
reasonable as of the date hereof, there can be no assurance that
these expectations, factors and assumptions will prove to be
correct. Forward-looking information is not a guarantee of future
performance and actual results or events could differ materially
from the expectations of the Company expressed in or implied by
such forward-looking information. Accordingly, readers should not
place undue reliance on forward-looking information. All
forward-looking information is subject to a number of known and
unknown risks and uncertainties including, but not limited to: the
condition of the global economy, including trade, inflation, the
ongoing conflict in Ukraine and
other geopolitical risks; the condition of the crude oil and
natural gas industry and related commodity prices; other commodity
prices and the potential impact on the Company and the industry in
which the Company operates, including levels of exploration and
development activities; the impact of increasing competition;
fluctuations in operating results; the ongoing significant
volatility in world markets and the resulting impact on drilling
and completions programs; foreign currency exchange rates; interest
rates; labour and material shortages; cyber security risks; natural
catastrophes; and certain other risks and uncertainties detailed in
the Company's management's discussion and analysis and annual
information form each dated March 16,
2023, for the year ended December 31,
2022, the Company's management's discussion and analysis
dated July 27, 2023, and from time to
time in Stampede's public disclosure documents available on SEDAR+
at www.sedarplus.ca.
This list of risk factors should not be construed as exhaustive.
Readers are cautioned that events or circumstances could cause
actual results to differ materially from those predicted,
forecasted, or projected. Statements, including forward-looking
information, are made as of the date of this News Release and the
Company does not undertake any obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities laws. The forward-looking information
contained in this News Release is expressly qualified by this
cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Stampede Drilling Inc.
